When the corporation issuing the bonds has the right to redeem the bonds prior to maturity, the bonds are
A) convertible bonds
B) unsecured bonds
C) debenture bonds
D) callable bonds

Question

Quizplus · Accepted Answer

Callable bonds are bonds that give the corporation the right to redeem the bonds prior to maturity. This means that the corporation can force bondholders to sell their bonds back to the company at a predetermined price.

When the Corporation Issuing the Bonds Has the Right to Redeem